China Datacenter Growth Has Challenges but Cloud Fuels Massive Construction

  China Datacenter Growth Has Challenges but Cloud Fuels Massive Construction

Business Wire

SHANGHAI -- November 06, 2012

International consulting group, BroadGroup, (
launched the early findings of a new study at their first regional datacenter
conference which was held in Shanghai last week. The study highlights China’s
extraordinary development in the datacenter sector and found that more than 17
provinces and municipalities were constructing 30 large-scale cloud
datacenters across the country with an investment of almost USD44 billion.

“Social networking, gaming, online transactions and mobile data as well as the
objectives of the 12^th 5-year plan unique to China, are collectively driving
growth in the requirement for datacenter storage and capacity,” said Philip
Low, managing director of BroadGroup. “The opportunity for vertical clouds,
although in its early stages is recognised as a way to drive further economic

BroadGroup’s China datacentre conference brought together the leadership of
many of the key players in the sector to discuss the challenges and the
opportunities of the current market.

Keynoting the conference, Jean-Pascal Tricoire, president and CEO of Schneider
Electric, presented a vision of how datacenter growth globally can be matched
with energy efficiency. Power and cooling is a critical challenge for China
with demand estimated to be from 1.5% to 5% of total energy consumption in the

Addressing a packed audience, Terry Graham, research associate for BroadGroup
and Hong Kong University, said: “The challenges related to the licensing
regime are unlikely to change in the immediate future. In addition, the
ability to raise funding to expand, complexity in the procurement of energy
and bandwidth and access to power is particularly challenging.”

The event also recognised the achievements gained so far by local companies.
Datacentre Entrepreneur of the Year Award was given to Madam Zhou Chaonan (周
超男) president of Range International, who is leading one of the largest
cloud development projects in China. Mr William Huang, (黄伟) CEO of GDS
accepted the Datacentre and Cloud Services Award, and Steve Hui CEO of
PowerAllNetworks, was awarded the Datacentre Energy Efficiency Award. The
Awards were presented by Guest of Honour Presenter Mr Zheng Hong (郑 宏)
Secretary General of Data Center Industry Alliance of China.

Despite these hurdles, the conference confirmed that China remains globally
the most important market and datacenter and cloud evolution figure as major
contributors to economic growth in the country.


Julia Vockrodt
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